Business Crises Are Not Forest Fires-PPT

Business Crises are not Forest Fires Theodore J. Hogan, PhD, CIH May 2004 Atlanta, Georgia 1 The Incident Command System • Developed to respond to forest fires – Universal organizational (management) structure – Standardized communication, action and response • Ineffective – Too complicated – Does not adapt to all crises – Not “user friendly” – Often doesn’t fit corporate decision-making culture 2 OSHA ICS example 3 Effective Crisis Management • About process not solution – Prescriptive document doesn’t cover all problems • Complements the management style of an organization – Company-specific principles – Minimize impact on people, environment, and the business 4 Decisions made in four key areas • Instead of making a guideline for each possible incident, ensure protection of four key areas supported by preplanning 1. Overall crisis process management 2. Employee issues 3. Operational issues 4. Communications 5 1. Crisis Management Process • Investigate the incident – What happened? – When/Where did it happen? – Who/What was involved? • Estimate potential harm – Public, community, customers, employees – Plant and equipment, business processes, operations – Shareholders, reputation, regulatory standing 6 • Develop an action plan – Goals • What needs to be done to minimize the worst case harm? – Tactics • When and how can we achieve this goal? – Resources • Who will be responsible for making it happen? 7 • Implement the action plan – Assign an Owner to the action item – Communicate expected actions, results and timeline to Owner – Provide resources required to complete action – Ensure effective completion of the plan • Evaluate the results • Manage change 8 2. Employee Guidelines • Facilitate treatment of any injuries or illnesses – Ensure support services – Get accurate descriptions of the incident – Provide Material Safety Data Sheets when applicable • Ensure adequate safety precautions – – – – Is the area safe to enter? Should access be restricted? What needs to be done before unrestricted access? Conduct incident investigation 9 • Make appropriate notifications – Consult the Crisis Communication Guidelines – OSHA requires verbal notification within 8 hours of a fatality or in-patient hospitalization of 3 or more employees – Employees and families need to get information directly from the company before they hear it from the media – Insurance Carrier requires information as soon as practical after a serious injury or death 10 • Ensure adequate security precautions – – – – Site access control Integrity of site boundary, including lighting Security staffing, performance, patrol frequency Implementing procedures, policies or work practices that reduce risk • Maintain accurate documentation and preserve evidence 11 • Manage psychological stressors – Identify stressors with a potential to escalate – Determine who is likely to be affected by the stressors – Assess reaction to the stressors and determine how feelings and coping mechanisms may change with time – Determine what actions the company should take to reduce or eliminate the stress and facilitate recovery • Minimize disruption of employee services 12 3. Operations Guidelines • • • • Secure the facility Verify integrity of all structures and systems Identify undamaged property that must be protected Conduct salvage operations 13 • Determine if notifications are required – – – – – – FDA/USDA OSHA EPA DOT State and local authorities Insurance Carrier • Maintain accurate documentation and preserve evidence 14 Production Impacts • Determine if product flow will be disrupted • Determine if production should be transferred • If production will be shifted, develop a contingency plan • Determine if labor resources are adequate 15 Supplies • Determine if critical supplies will be interrupted • Determine if other plants or business units will be affected by the disruption • Ensure repairs are safe, effective, and timely 16 4. Communications • • • • Determine the audience Identify their information needs Develop the message Determine who will provide the message and method of communication • Deliver the message • Assess reaction to the message 17 Summary of four key areas • Overall crisis process management – Investigate incident, estimate potential harm, develop action plan, implement action plan, evaluate results, manage change • Employee guidelines – Treatment of injuries, adequate safety precautions, appropriate notifications, security precautions, documentation and evidence, psychological stressors, minimize disruption 18 • Operations Guidelines – Secure facility and verify integrity of all structures and systems, identify undamaged property and conduct salvage operations, notifications and accurate documentation, determine product flow disruption, adequate labor resources, critical supplies, safe, timely repairs • Communications – Determine the audience and their information needs, who provides the message and the method, deliver the message, assess reaction 19 Preplanning • Implement emergency action procedures and related documents • Identify all critical systems and protective measures that can be implemented before a crisis occurs • Develop plans for restoring critical systems • Establish procedures for special actions • Consider physical retrofits to reduce the impact of an emergency • Prearrange support services 20 More Preplanning • Cultivate a trusting relationship within the community • Establish an emergency operations center in a secure location • Determine which records are vital to the quick restoration of operations • Establish procedures for protecting vital records • Establish documentation methods • Conduct training 21 Final Summary • The Incident Command System developed for forest fires and does not adapt to all crises • Effective Crisis Management Complements the style of an organization • Decisions made in four key areas, crisis process, employee issues, operational issues, communications • Preplanning 22 Contact Information • Copy of slides available at www.tjhinc.com Theodore J. Hogan, Ph.D., CIH Theodore J. Hogan & Associates, Inc. 103 Stephen Street, 2nd Floor Lemont, Illinois 60439 630-257-3939 x101 thogan@tjhinc.com 23